Stablecoin market cap fell 2.39% in June, the first monthly decline in five months, while Visa-adjusted transaction volume surged 63% to $1.79 trillion.
The stablecoin market shrank in June for the first time in five months. Transaction activity hit a record at the same time.
CoinDesk Data reported on July 6 that total market capitalization fell 2.39%, or about $7.7 billion, to $312 billion. That was the largest monthly dollar decline since the Terra-Luna collapse in May 2022. The drop was far smaller in percentage terms – 2.39% versus roughly 20% during the 2022 crisis.
Visa’s Allium-powered dashboard recorded $1.79 trillion in adjusted transaction volume for June. That was up 63% from May and 125% from June 2025. USDC handled about $1.21 trillion of that total, more than double USDT’s $576 billion, despite having less than half of USDT’s circulating supply.
DefiLlama’s stablecoin dashboard placed total capitalization at about $309.9 billion on July 28, down 0.79% over 30 days. USDT remained the largest token near $183.9 billion. USDC stood near $73.7 billion.
The June decline did not involve a major depeg. Both USDT and USDC traded close to $1 on July 28, according to DefiLlama. The contraction came through lower circulating supply, not a collapse in token prices.
Data providers measure the market differently. CoinGecko’s Q2 industry report put the quarter-end total at $305.1 billion and reported a $4.8 billion, or 1.6%, quarterly decline – the first quarterly contraction since Q3 2023. CoinDesk Data recorded the first monthly decline in five months. Neither dataset supports calling June the first contraction of any kind since Terra.
Visa’s adjusted volume figure is not a pure payments metric. The dashboard filters out known bot activity, intra-exchange transfers, redundant smart-contract movements, and wallets that cross high-frequency or high-volume thresholds. It still includes exchange deposits and withdrawals, decentralized exchange trades, lending, investment funds, minting and burning, and on- and off-ramp activity. The $1.79 trillion total measures filtered economic movement, not purchases or merchant settlement.
A separate McKinsey and Artemis analysis estimated identifiable stablecoin payments at about $390 billion during 2025, or roughly 0.02% of global payment volume. B2B payments accounted for about $226 billion. Most on-chain activity came from trading, internal transfers and automated processes.
Tokenized Treasury products offer a plausible destination for some capital leaving non-yielding stablecoins. RWA.xyz placed tokenized U.S. Treasury value at about $16.2 billion in late July. Circle’s USYC stood near $3 billion and BlackRock’s BUIDL near $2.64 billion on July 28. Payment stablecoins generally do not pass reserve income directly to holders. Tokenized Treasury funds provide exposure to short-term government debt while remaining on-chain. Treasurers may hold idle balances in yield products and convert into stablecoins nearer to settlement.
Public data do not prove that the full $7.7 billion decline moved into tokenized funds. CoinDesk Data found that total tokenized asset capitalization rose 1.75% to $30.1 billion in June while stablecoin supply fell. That supports a broader shift toward tokenized financial products, though it does not establish a direct transfer. CoinGecko also found that some yield-linked crypto dollars contracted during Q2. USDS fell 16.4%, while USDe declined 24.4%. CoinGecko attributed the reductions partly to yields falling below the risk-free rate and users unstaking related products.
The regulatory backdrop remains unfinished. The GENIUS Act was enacted on July 18, 2025 and created a federal framework for payment stablecoin issuers. The Office of the Comptroller of the Currency’s proposed rules cover reserves, redemption, risk management, reporting, custody and supervision. The law is scheduled to take effect on January 18, 2027, or 120 days after federal regulators issue final implementing rules, whichever comes first. Regulators had not completed the full rulebook by July 28. The one-year rulemaking deadline passed with multiple proposals awaiting final action.
One live deadline concerns customer identification. A joint federal proposal would require permitted payment stablecoin issuers to establish risk-based procedures for identifying and verifying customers. Comments are due by August 21, 2026.
The FDIC also issued proposed reporting forms on July 17, with comments due 60 days after publication in the Federal Register. These filings would establish regular financial and operational reporting for payment stablecoin issuers under FDIC supervision.
The next evidence will come from issuer mint-and-burn data, month-end supply, peg stability and adjusted transaction volume. A return to net issuance would support the view that June was temporary. Continued redemptions would point to a longer contraction in on-chain dollar liquidity.
June supports two conclusions at once. Stablecoin supply weakened, the remaining tokens moved at a record adjusted rate. Market capitalization measures the size of the float. Adjusted volume measures how actively it circulates. Neither metric replaces the other.
For broader context on the crypto market analysis, the divergence between supply and usage has been building for months. USDC has held a sustained lead over USDT in adjusted transfer value since early 2026.
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